Newly Cheap Microsoft Is Still a Favorite Growth Play for Investors

In a world of sputtering growth for technology companies, some investors are gravitating toward Microsoft Corp. as the closest thing to a safe bet.

The attractions those bulls see should be on display in the Redmond, Washington-based company’s fourth-quarter results after the market close Tuesday: Wall Street expects Microsoft will report earnings growth of 6% and a 14% increase in revenue, extending a years-long streak of double-digit sales expansion.

While Microsoft hasn’t been immune to this year’s tech stock selloff, the company has a reputation for durable growth, thanks to business software and cloud-computing offerings that analysts see as mission critical for corporations, making customers unlikely to drop them in a downturn. And the stock looks like more of a bargain than it did during the 2021 tech surge.